THE THIROOR SERVICE CO-OPERATIVE BANK LTD NO. 4140 vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

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WP(C)/8687/2020HC KeralaKLHC01022252202011 June 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the Commissioner of Income Tax (Appeals) to decide the pending appeals (Exts.P3, P7, and P12) in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing, within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the decision should be taken without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment orders shall be kept in abeyance until a decision is taken on the appeals. The ratio decidendi is that pending appeals should be disposed of expeditiously, and recovery should be stayed until such disposal, with specific directions regarding pre-deposit requirements based on circulars.

What were the facts?

The petitioner, The Thiroor Service Co-operative Bank Ltd, an assessee for assessment years 2012-2013, 2016-2017, and 2017-2018, filed a writ petition before the High Court of Kerala. The petitioner sought a direction to the Commissioner of Income Tax (Appeals) to dispose of pending appeals and interim applications against assessment orders passed by the Income Tax Officer. The petitioner's grievance was the non-consideration of their appeals and stay petitions. The assessment orders concerned tax, penal interest, and other demands. The petitioner also challenged certain notices and an order. The petitioner relied on a Division Bench judgment directing an absolute stay of recovery.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) should be directed to dispose of the pending appeals and interim applications filed by the petitioner? 2. Whether the recovery proceedings should be stayed pending the disposal of the appeals? Assessee's Contentions: The petitioner argued that their appeals and stay petitions before the Commissioner of Income Tax (Appeals) remained unconsidered. They relied on a Division Bench judgment of the High Court in writ appeal No.1536/2019, which directed the grant of an absolute stay of recovery. The petitioner sought a direction for the expeditious disposal of their appeals and interim applications. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL THURSDAY, THE 11TH DAY OF JUNE 2020 / 21ST JYAISHTA, 1942 WP(C).No.8687 OF 2020(I) PETITIONER/S: THE THIROOR SERVICE CO-OPERATIVE BANK LTD NO. 4140 THIROOR, MULANKUNNATHUKAVU P.O. THRISSUR 680 581, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.C.SASIDHARAN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, S.T. NAGR, THRISSUR 680 001. 2 THE INCOME TAX OFFICER, WARD 2, THRISSUR , OFFICE OF THE INCOME TAX OFFICER, WEST NADA, GURUVAYOOR THRISSUR 680 101. OTHER PRESENT: SRI JOSE JOSEPH SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.06.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.8687 OF 2020(I) 2

JUDGMENT The petitioner, a primary agricultural credit society approached this Court seeking a direction to dispose of Exts.P3, P7 and P12 appeals and Exts.P4, P9 and P13 interim applications preferred before the first respondent/Commissioner of Income Tax (Appeals) against the assessment orders Exts.P1, P5 & P10. Petitioner also challenges Exts.P2, P6 and P11 notices and Ext.P8 order. The petitioner is an assessee on the file of the 2nd respondent for the assessment years 2012-2013, 2016-2017 and 2017-2018 . Second respondent completed assessment towards tax interest, penal interest and other heads. The grievance of the petitioner is that neither the appeals nor stay petitions have been considered by the respondents. Petitioner relies on the Division Bench judgment of this Court in writ appeal No.1536/2019 directing to grant absolute stay of the recovery.

2.

Having heard the learned counsel on both sides, the writ petition is disposed of with a direction to the third respondent to take a decision on Exts.P3, P7 and P12 appeals in WP(C).No.8687 OF 2020(I) 3 accordance with law, after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a copy of this judgment without insisting on payment of 20% of the tax demanded, as per circular of 2017. Till such time a decision is taken on the appeal, recovery proceedings pursuant to the assessment orders shall be kept in abeyance. AMIT RAWAL JUDGE Jm/

WP(C).No.8687 OF 2020(I) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 14/12/2018 ALONG WITH THE COMPUTATION SHEET. EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE DATED 14/12/2018. EXHIBIT P3 TRUE COPY OF THE APPEAL DATED 16/1/2019. EXHIBIT P4 TRUE COPY OF THE STAY PETITION DATED 16/1/2019. EXHIBIT P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 15/11/2019. EXHIBIT P6 TRUE COPY OF THE DEMAND NOTICE DATED 15/11/2019. EXHIBIT P7 TRUE COPY OF THE APPEAL DATED 12/12/2019. EXHIBIT P8 TRUE COPY OF THE ORDER DATED 6/1/2020. EXHIBIT P9 TRUE COPY OF THE STAY PETITION DATED 17/1/2020. EXHIBIT P10 TRUE COPY OF THE ASSESSMENT ORDER DATED 18/11/2019. EXHIBIT P11 TRUE COPY OF THE DEMAND NOTICE DATED 18/11/2019. EXHIBIT P12 TRUE COPY OF THE APPEAL DATED 27/12/2019. EXHIBIT P13 TRUE COPY OF THE STAY PETITION DATED 27.12.2019. EXHIBIT P14 TRUE COPY OF THE JUDGMENT DATED 1/7/2019 IN W.A. NO. 1536 OF 2019. WP(C).No.8687 OF 2020(I) 5

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